Swiss polyamide specialist EMS (Domat; www.ems-group.com) said full-year 2023 sales fell 10.4% to CHF 2.19 bn (EUR 2.32 bn) on the back of a strong Swiss currency and a general slowdown of the global economy dampening demand.

It said the “very cautious” behaviour among consumers was “clearly noticeable” in its High Performance Polymers business, which accounts for the bulk of group sales.

Related: EMS polyamide business remains difficult

In its Specialty Chemicals business, the “poor market situation” in Europe had a “particularly strong effect”, it noted.

Europe generated nearly half of the group’s overall sales, followed by Asia and America.

Net operating income (EBIT) decreased 19.4% to CHF 493 mn, while net operating income before depreciation (EBITDA) slumped 18.0% to CHF 542 mn. Net profit tumbled 13.8% to CHF 461 mn.

The company proposed to slash dividends to CHF 16 per share compared with the year-earlier CHF 20 per share. 

For 2024, EMS projects flat sales and a slightly higher EBIT given what it expects to be a continuing difficult economic environment. The company noted that geopolitical conflicts with rising freight costs and only moderate interest rate cuts would additionally subdue economic development. 

Despite the lower 2023 results and contrary to the general trend, EMS said it has decided to massively expand technical sales and development with over 120 additional employees in all three regions of Asia, America, and Europe.

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Noting its strong cash flow, which increased in 2023 to CHF 576 mn from CHF 366 mn, as well as high liquidity and absence of financial debt, EMS said it is nimble and flexible enough to tap market opportunities. 

It would therefore continue to implement investment plans that had started in 2021, with more than CHF 300 mn being spent to increase capacity and energy efficiency at its main production site in Domat.

The company added that a large-scale plant with a newly developed production process allowing energy consumption to be halved has just begun operation.